EUR/GBP keeps losses circa 0.72 post EZ data

FXStreet (Mumbai) - The shared currency remains slightly vulnerable against the British pound in the European session; keeping the upside in EUR/GBP checked, largely as the euro remains undermined after EZ final CPI print remained in negative territory for the fourth consecutive month, confirming the prelim estimate.

EUR/GBP remains in red

Currently, the EUR/GBP cross trades -0.11% lower at fresh session lows of 0.7197 post data release. The cross in EUR/GBP fell to fresh session lows mainly driven by a retreat in the euro versus the pound after downbeat EZ CPI data release which showed that consumer prices in the 19-nation bloc continued to fall in March, final data confirmed.

The inflation rate in the 19 countries sharing the euro was 0.1% lower than a year earlier in the third month of the year, following the 0.3% fall seen in February.

On the other hand, the losses were further accelerated as the pound was boosted after Britain’s jobless rate fell to 5.6% in February while wage growth was only slightly up for pay excluding bonuses but pay including bonuses rose lower than the previous three months.

Later in day, US CPI and consumer sentiment data may provide further momentum on the cross.

EUR/GBP Levels to consider

To the upside, the next resistance is located at 0.7242 (April 14 High) and above which it could extend gains to at 0.7274 (April 13 High) levels. To the downside immediate support might be located at 0.7161 (April 16 Low) levels below that at 0.7152 (March 19 Low) levels.